8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

____________________

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of Earliest Event Reported): November 27, 2007

AMERICAN PHYSICIANS SERVICE GROUP, INC.

(Exact Name of Registrant as Specified in its Charter)

TEXAS	0-11453	75-1458323
(State or Other Jurisdiction	(Commission	(IRS Employer
of Incorporation)	File Number)	Identification No.)

1301 CAPITAL OF TEXAS HIGHWAY

SUITE C-300

AUSTIN, TEXAS 78746

(Address of Principal Executive Offices, Zip Code)

(512) 328-0888

(Registrant’s Telephone Number, Including Area Code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01 Other Events

On November 27, 2007, American Physicians Service Group, Inc. issued a press release entitled, “A.M. Best Assigns A- (Excellent) Rating to American Physicians Insurance Company". A copy of our press release, which is attached hereto as Exhibit 99.1, is incorporated by reference in its entirety.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

The following exhibits are furnished herewith:

Exhibit Number	Description
99.1	Press release issued by American Physicians Service Group, Inc. dated November 27, 2007

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: November 27, 2007	American Physicians Service Group, Inc.
	Signed: /s/ Marc J. Zimmermann
	Name: Marc J. Zimmermann
	Title: Senior Vice President - Finance

EX-99.1

Exhibit 99.1

A.M. BEST ASSIGNS A- (Excellent) RATING TO AMERICAN

PHYSICIANS INSURANCE COMPANY

AUSTIN, TEXAS, November 27, 2007 – American Physicians Service Group, Inc. (“APS”) (NASDAQ: AMPH) today announced that A.M. Best Company has assigned a financial strength rating of A- (Excellent) and an issuer credit rating of “a-“ to American Physicians Insurance Company (“API”).

A.M. Best cited API’s strengthened risk-adjusted capital position, historically favorable operating performance, experienced management team and strong policyholder retention in assigning the rating. They also noted the benefits derived from API’s status as a newly acquired wholly owned subsidiary of APS, saying that the transaction had provided API with financial flexibility and access to capital that it previously did not possess.

Ken Shifrin, APS’ Chairman of the Board, stated, “We are obviously pleased with our strong initial rating from A.M. Best. While API had grown as an unrated carrier to be the third largest medical malpractice insurer in Texas by offering the excellent service reflected in its ‘doctors serving doctors’ motto, we believe that this rating will enhance both geographic expansion opportunities and opportunities with those Texas medical groups who purchase only from rated carriers.”

Tim LaFrey, President, added, “Obtaining the favorable rating for API is another step in our plan to strengthen and grow APS. In April we acquired API. In June we raised $36 million in a follow-on stock offering and contributed $10 million to the capital of API. We announced our expansion into Oklahoma in August and have now demonstrated our financial strength with a strong rating from A.M. Best. We remain aggressive in seeking venues for expansion of our core business and look forward to reporting our progress.”

About APS

APS is an insurance and financial services firm with subsidiaries and affiliates which provide medical malpractice insurance for doctors and other healthcare professionals and brokerage and investment services to institutions and high net worth individuals. The Company is headquartered in Austin, Texas and maintains offices in Dallas.

Forward-Looking Statements

This press release includes forward-looking statements related to the Company that involve risks and uncertainties that could cause actual results to differ materially. These forward-looking statements are made in reliance on the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. For further information about these factors that could affect the Company’s future results, please see the Company’s recent filings with the Securities and Exchange Commission. Prospective investors are cautioned that forward-looking statements are not guarantees of future performance. Actual results may differ materially from management expectations. Copies of the filings are available upon request from the Company’s investor relations department.

For further information, visit APS’ website at www.amph.com or contact:

Mr. Kenneth Shifrin, Chairman of the Board (or)

Mr. Tim LaFrey, President

American Physicians Service Group, Inc.

1301 S. Capital of Texas Highway, Suite C-300

Austin, Texas 78746

512.328.0888